Buy domestic or foreign brands? The moderating roles of decision focus and product quality

Abstract

PurposeThis article sought to explore the effect of brand origin on consumer preference and examine the moderating effects of decision focus (buying for self vs buying for others) and product quality.Design/methodology/approachThe authors conducted two studies to test our hypotheses. In Study 1, the authors explored consumers' general preferences for domestic and foreign brands. Based on the evidence, Study 2 further explored the moderating roles of decision focus and product quality.FindingsIn general, consumers in developing countries prefer foreign brands. The effect can be moderated by the decision focus that this preference will be more obvious when consumers buy for others than when they buy for themselves. Product quality can also moderate the role of decision focus; in other words, consumers' preference for foreign brand when buying for others will be stronger when the product quality is low than when the product quality is high.Practical implicationsForeign brands have a natural appeal to local consumers in developing countries. Moreover, foreign brands can also invoke consumers' awareness of buying for others (such as giving gifts) to boost sales. Domestic brands are at a disadvantage comparing to foreign brands, but they can increase their attractiveness by invoking consumers' awareness of rewarding themselves. In addition, domestic brands need to improve product quality to fundamentally improve their competitiveness.Originality/valueThe research contributed to literature by combining decision focus and product quality in studying consumer preference for domestic and foreign brands from the perspective of construal level theory, which provides valuable insights in the field of international marketing and consumer behavior.